Temporary PeachCare fix proposed by GOP leaders

ATLANTA - Gov. Sonny Perdue and Republican legislative leaders have agreed to a temporary fix for PeachCare, allowing some 273,000 poor children in Georgia to continue receiving health insurance even as federal dollars dry up.

The state will shift Medicaid dollars into PeachCare to avoid having the program run out of money at the end of the month. The state stopped enrolling new children in PeachCare this week because of the funding crunch.

"We will do our part to loan the federal government money to keep these kids insured," Perdue told reporters Tuesday.

Democratic leaders in Congress recently have pledged to provide $750 million to Georgia and 13 other states facing shortfalls under the federal State Children's Health Insurance Program, but they are not likely to deliver before PeachCare runs out of money. Georgia is facing a $131 million shortfall.

Perdue said that with Democrats and Republicans in Washington voicing support for the additional funding, he was confident it would pass as part of the Iraq war supplemental. "We've been committed all along that we are not going to let these children fall through the cracks," Perdue said. "But it was also important that Congress step up and shoulder its burden in this effort."

Perdue said he was hopeful the state could lift the freeze and begin enrolling new children again in PeachCare as soon as Congress authorized the additional money. He is set to make a return trip to Washington today to talk about PeachCare at the National Press Club.

The solution agreed to on Tuesday by Perdue, Lt. Gov. Casey Cagle and House Speaker Glenn Richardson would not move children into the Medicaid program. Instead, it would change state law to allow Georgia to shift state funds already budgeted for Medicaid to PeachCare.

Georgia Democrats said they were pleased a solution had been reached but accused Republicans of creating a false crisis. They said Perdue and Republicans could have relieved the anxiety of families in PeachCare around the state far earlier.

The solution adopted by Perdue is one Democrats have been pushing for weeks, said state Sen. Kasim Reed, D-Atlanta.

Democrats also pointed out that top state Republicans are pushing cuts to PeachCare funding.